BRIOZZO Anahi Eugenia
congresos y reuniones científicas
Rethinking SME' s financing decisions: a demand-side approach
ANAHÍ BRIOZZO; HERNÁN VIGIER
Congreso; XLII Reunión Anual de la Asociación Argentina de Economía Política; 2007
Asociación Argentina de Economía Política
Corporate finance, and capital structure theory in particular, study the firms decisions from a normative point a view: shareholder value maximization. However, Brealey and Myers (2006) point out that how financial decisions are made is a question that still remains unanswered. In this paper we propose a descriptive approach to the understanding of how small and medium enterprises (SME) make their financing decisions. We identify three distinctive cases of attitude towards debt financing. Considering the owner-firm intertwinement as a fundamental characteristic of these firms, we include behavioral factors as explanatory variables for these cases. Then we compare the implications of our approach with a dataset of firms from Bahía Blanca (Argentina).